Nokia Q3: Loss of €559 Million During The Third Quarter

[Apocalypso]

Nokia Reported Loss Of €559 Million And Disappointing Smartphones Results For The Third Quarter



As expected, The Finnish mobile phone giant today reported financial results for the third quarter 2009 with a loss of 559 million euro in the, taking hits from a 20 percent drop in sales and a one-time charge for the fallen value of its network equipment unit.

The Finnish company also booked a euro908 million charge at Nokia Siemens Networks.

The write-down reflects the company's recognition that it won't recover its investment in the joint venture it formed with Siemens AG in 2007 because of more difficult conditions in the industry and likely lower profitability. The mobile phone industry has bee... .. .

Read more:
Nokia Q3 2009 Net Sales EUR 9.8 Billion - full story

Sincerely yours,
Teo

[Juxhin]

Nokia deserves this. Other mobile companies have made great steps forward in creating the mobile phones that we want. Nokia don't even release the firmware that will change 5800 and N97. We just have to wait and hope.

[e_lm_70]

As expected, ...

Expected ?

Wow, you must have a crystal ball

Nokia report the loss ONLY for a write down of the valuation of the Network division.

Now tell me, you was aware of it? People was aware of it?

For sure not the financial analysts that study the balance/report of Nokia and other tangible Nokia biznes data.

Now if maybe could be forecast that Nokia have/had to write down the Network division, why in this quarter ?

Anyhow ... my super expert ... if you move your nose away from the bold news that Nokia post a loss (still while generating positive cash flow) ... you will notice that the mobile division of Nokia did made 785m in profit selling mobile devices ... yes .. a "bad" number compared to the 1.6b done 1 year ago ... but a stable number compared to 3 months ago.

Tchuss

e_lm_70

[jfbaudio]

What's more worrying for readers of this site, I think, is the loss of market share for smartphones, from 41% down to 35%, in just one quarter. That is 100% due to the fact the N97 did not live up to expectations (yes, I know, many people like it, but not enough of them)

As with most brands, it helps to have a flagship item to make all your other items look better (car makers, fashion designers, electronics makers all do this). If your flagship item falls flat, the rest of your line follows. Imagine if the next BMW M5 turned out to be a dud? All BMW sales would fall, even though few can really afford the M5.

The N900 might help fix this but I'm not sure. It's still not a "flagship", since it had a different OS, and most of the hardware is not particularly new (GPS, 5MP camera, etc....) But it's the best thing in Nokia's stable right now. Unless they get their act in gear and come out with a kick-ass N99, they will see their smartphone market share decline again next quarter. And that's bad news for Symbian, whose next generation could end up stillborn...

[uk786]

Bravo Nokia got what you deserve!

[katsuru]

Hope nokia learns with it.

samsung and sonyericsson, both showing a lot of progress on their last model phones. Nokia still looks the same. Its like they are not putting enough effort nowadays on the new devices.


Open your eyes nokia...

[Bec]

N97 and 5800 clones...

[Kalel17]

we are all still on the uninnovative, weak flagship, falling market share crap but let me explain. Despite our constant chatter about n97 failure and stuff, we should acknowledge that it isnt a failure it has sold more than 2million units since it has been on the market and that is not failure. I could go as far to say that it has achieved some success despite the constant bashing from everyone in the blogosphere and forums. Second, the market share is actually growing, i dont know where you get that 35 and 41% from but in the last q2 it rose from 45% to 48% in my knowledge that is not falling. It is also set to rise when the q3 report comes out because nokia is flooding the market with budget smartphone. Third, nokia is in a transition so it is expected that they will spend more than they earn as they change frm purely mobile phone manufacturers to a provider of services. The downfall of the profit is also due to the cheaper phones being sold. As you might know phone manufacturers get more profit from more expensive models, but nokia is going towards much cheaper models. So the increase in market share through the flooding of the market share with cheaper phones is having a negative effect on the company's profit. So screw the constant talk about no innovation and all the other crap, from a business stand point a few hundred thousand geeks is not the mass market and thats exactly where nokia is targetting. Our constant talk about these stuff has little effect on any1 and the sale figures of the n97 proves that, please dont come to me about returns etc because that is not considered in phone sales.

[Bec]

I wonder how would it be if they managed to be more like apple?
And focus on maemo for experienced users.

Sell worthless phones for gold like apple does...
How do they do it

[katsuru]

I wonder how would it be if they managed to be more like apple?
And focus on maemo for experienced users.

Sell worthless phones for gold like apple does...
How do they do it

They would do terrible! Apple is not even close to Nokia when it comes to cellphones